Swami’s Café Settles Sexual Harassment Lawsuit for $650,000

Swami’s Café, a San Diego restaurant chain, has agreed to pay $650,000 to settle a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) that accused the chain of fostering a “highly sexualized work environment.” The lawsuit alleged that a manager at the Encinitas location subjected young women and teenage girls to sexual harassment and retaliated against those who resisted his advances. The settlement, which does not include an admission of wrongdoing by Swami’s or its owner, comes with a two-year consent decree mandating the implementation of new workplace policies.

San Diego Union Tribune

The consent decree requires Swami’s Café to establish formal anti-discrimination and anti-retaliation policies across all nine of its locations in San Diego County, including Honey’s Bistro in Encinitas. An independent monitor will be hired to oversee compliance with the decree, which includes conducting audits and assisting in the development of mandatory anti-harassment training for employees. The settlement payment will be distributed among the woman who initially filed the complaint and other eligible employees, as determined by the EEOC.

San Diego Union Tribune

The EEOC's investigation into Swami’s began after a complaint from a teenage girl who alleged she was fired in retaliation for reporting sexual harassment. The agency found “reasonable cause” to believe that Swami’s had violated Title VII of the Civil Rights Act, which prohibits employment discrimination. Despite participating in the investigation, Swami’s did not agree to the EEOC's proposed remedies, leading to the lawsuit filed in May 2023.

San Diego Union Tribune

In a statement, Swami’s Café expressed its commitment to the well-being of its employees and the community, asserting that it has cooperated fully with the EEOC throughout the process. The company emphasized its proactive measures taken in response to concerns raised and its dedication to creating a positive and inclusive workplace. The EEOC commended the bravery of the young women who came forward and highlighted the settlement as a significant step forward for workplace rights.

San Diego Union Tribune

While Swami’s maintains its innocence regarding many claims, the lawsuit underscores broader issues of workplace harassment and the responsibilities of employers to protect their employees. Critics argue that the settlement, while a step in the right direction, reflects systemic failures in addressing sexual harassment in the restaurant industry.

San Diego Union Tribune

The independent monitor will begin oversight duties to ensure compliance with the consent decree, which includes the establishment of a new complaint process and enhanced training for all employees. The EEOC will also reach out to current and former female employees to determine eligibility for compensation from the settlement.

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“While the company disputes many of the claims, we believe it was in the best interest of our employees, our guests, and our community to resolve the matter and move forward collaboratively,” — Swami’s Café

San Diego Union Tribune

“The injunctive relief in this decree is an excellent step forward for Swami’s Café and Honey’s Bistro, and it would behoove other employers to take note of the relief furnished in this case and implement similar changes as necessary.” — Jacquelyn Famber, Director of the EEOC’s San Diego Office

San Diego Union Tribune

“The company shall also remove any negative references to the harassment, discrimination and retaliation from the employees’ personnel files and offer the individuals who were fired or quit the opportunity to be reinstated, if they so choose,” — EEOC Statement

San Diego Union Tribune